A major Australian engineering firm has been banned from receiving World Bank money.

The World Bank has announced it has debarred Melbourne-based SMEC International and four subsidiaries in India, Bangladesh and Sri Lanka after a misconduct investigation.

It means the companies are no longer eligible to receive World Bank-financed contracts.

Investigators found evidence of inappropriate payments made in relation to World Bank-financed projects in Sri Lanka and Bangladesh, as well as a number of misrepresentations to meet bidding requirements for projects.

The sanctions could range from six to 30 months.

SMEC was originally the Snowy Mountains Engineering Corporation, formed in 1949 to build the iconic Snowy Mountains hydroelectric scheme.

It was sold last year to Singapore-based Surbana Jurong for $400 million.

Media investigations last year raised allegations of bribery in Sri Lanka and Bangladesh, including claims that SMEC staff sought approval to pay kickbacks to foreign officials.

SMEC International says it will fulfil its existing World Bank contracts in the region.

The World Bank is the biggest backer of global aid projects, spending about $US150 billion a year in developing economies.

SMEC International says it will strengthen its corporate integrity compliance programs.